This document discusses lean manufacturing principles and how to increase value-adding activities and efficiency at a factory. It notes that the factory's current value-adding percentage is less than 0.1%, compared to Toyota's over 10%, and that the goal is to increase cutting and making (CM) efficiency. Specific actions proposed include finalizing and implementing lean processes, establishing an ethics code, conducting process audits, and holding motivational events to increase team synergy. It is estimated it will take 3 months to start seeing positive impacts if the project is continued without neglect. The key message is that results will be clear through increased CM efficiency, productivity and reduced waste.

1. Black & White
By C.J Ratnayeke

2. What is synergy ?
Energy + Energy…………………+ Energy = Synergy

3. Reality of our business
All Pre production
Departments
Point of Synergy
Cutting
Production
Finishing
Washing
Packing

4. Always remember
Customer not paying for Fertilizer,
water, roots , branches or for
leaves!!!
Customer paying only for
Apple

5. What is CM
And
Cut & Make

6. Our apple ?

7. What is lean?
• Lean manufacturing is a business model and
collection of tactical methods that emphasize
eliminating non-value added activities (waste)
while delivering quality products on time at
least cost with greater efficiency.
• Eliminating waste means increasing Value
adding.

8. Our value adding
Value adding = CM
Our Value adding percentage is less
than 0.1%
Toyota value adding percentage is
over 10%
But Toyota took five decades to achieve this

9. So what we have to do?
Value Adding
Waste

10. Results are black & White
• What ever we do finally everybody wants to
know how much we earn & our efficiency.
• Its very simple if our CM & Efficiency high than
our competitor factories then we can proud.
• But if we fail to achieve our targets what ever
reason behind is not important.
Because results are BLACK & WHITE!!!!!!!!!

11. Variables of Efficiency
SMV X Number of Pieces
Number of SMO X Working minute
Efficiency
Eliminating Waste will be effect to
Increasing number of pieces & reducing
the number of SMOs to a particular
band = Increase Efficiency.

12. Productivity
Efficiency Quality Productivity

13. First action
“own productive process with lean
principles and continue it with
improvements & innovations ”

14. Objective : To increase Factory CM &
Efficiency.
• Finalize & implement documented approved
process.
• Established code of ethics for supervisor level
& above.
• Conducting process audits & implementing
fine system for process violations.
• Organizing motivational events & other events
to widen synergy of the team.

15. Responsibilities
Action Responsibility
Process development Operational System
Department
Code of Ethics Human Resources Department
Process Audits Operational System
Department
Development of Synergy Human Resources Department

16. How long it will take to deliver results
• Within 3 months period we can see positive
impact.
• Only condition will be continue the project
without ignorance.
• Motivational events will be the fuel to run this
project. Hence need to link all events with
production section.

17. THANK YOU